W4 Soybean Oil Update: Rising Freight Rates Drive Preference for Soybean Oil, Impacting India's Sunflower Oil Imports

Rising Freight Rates Impacted India's Sunflower Oil Imports, Boosting Appeal for Soybean Oil

Rising freight rates are expected to lead to a decline in India's sunflower oil imports in the coming months as the increased costs make soybean oil and other vegetable oils more attractive due to discounts. High freight rates have caused the cost of landing sunflower oil in India to surpass soybean oil for the first time in almost a year. In W4, crude sunflower oil imports are priced at around USD 943 per metric ton (mt), including cost, insurance, and freight (CIF) for delivery in Feb-24, while crude soybean oil is approximately USD 935/mt. During Nov-23, sunflower oil prices were USD 120/mt lower than soybeans, prompting Indian buyers to increase sunflower oil imports. India doubled the import of sunflower oil to 260.85 thousand mt in Dec-23, compared to Nov-23, and increased soybean oil imports by 1.8% month-on-month (MoM) to 152.65 thousand mt. However, in the 2022/23 marketing year (MY), the average monthly import of soybean oil stood at 306 thousand mt.

China's Soybean Oil Stocks Dip 2% WoW as of January 12

As of January 12, soybean oil stocks in China, reported by CNGOIC (China National Grain and Oil Information Center), stood at 890 thousand mt, indicating a 2% week-on-week (WoW) decrease for the week, a 5% increase MoM, and a 25% increase year-on-year (YoY).

Paraguay's 2023 Soybean Oil Exports Surged to USD 516 Million

In 2023, the Paraguayan soybean complex generated a foreign exchange income of USD 4,823 billion, marking a significant 105% YoY increase. The volume of exports, including soybeans and byproducts, reached 8.9 million metric tons (mmt), representing a substantial 129% YoY increase, as reported by the Paraguayan Chamber of Exporters and Marketers of Cereals and Oilseeds (Capeco). Specifically, soybean oil exports totaled 522,688 mt, valued at USD 516 million.

Argentina's 2023 Soybean Processing Slumps 29% YoY: Lowest Volume Since 2004

The Rosario Grain Exchange reported a 29% YoY decline in Argentina's soybean processing volumes for 2023, reaching 27 mmt, the lowest since 2004. The reduction is due to a significant 56% YoY drop in soybean production in the 2022/23 MY. More than 36% of processed oilseeds were imported in 2023 to compensate for the shortage of raw materials, with a focus on industrial processing of soybeans and the export of value-added products like oil, meal, biofuel, and glycerin.

Russian Vegetable Oil Exports Surged 33% YoY in 2023, Led by Soybean Oil

In 2023, Russia experienced a remarkable 33% YoY surge in vegetable oil exports, reaching over 6.5 mmt, with soybean oil exports increasing by 8% YoY to 668 thousand mt. Notably, India emerged as a leading importer, securing the top position with 208 thousand mt, followed closely by Algeria at 180 thousand mt. Additionally, China witnessed a 69% YoY increase in vegetable oil supplies, totaling 144 thousand mt.